Structural Shift or Statistical Sleight, The change of Consumer Price Index (CPI) index Weight
Research Note: Structural Shift or Statistical Sleight? Date: January 30, 2026 Analyzing the 2024 CPI Base Revision & Its Implications for India’s Economy Subject: Critical Assessment of the New CPI Series (Base Year 2024) 1. Executive Summary The Ministry of Statistics and Programme Implementation (MoSPI) is set to release the new Consumer Price Index (CPI) series (Base 2024) on February 12, 2026. This represents the most significant overhaul of India’s inflation targeting framework in over a decade. By replacing the obsolete 2012 consumption basket, the government has reduced the weight of Food by nearly 9 percentage points while significantly increasing the weight of Housing and Services. The Verdict: * For Economic Growth: Highly Favorable. The revision aligns with global standards, reduc...